Attached files
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| 8-K - 8-K - ATLANTIC AMERICAN CORP | form8k.htm |
Exhibit 99.1
ATLANTIC AMERICAN REPORTS THIRD QUARTER RESULTS
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Net income for the three month period ended September 30, 2018 increased to $0.9 million as compared to $0.7 million for the comparable period of 2017
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Life and health insurance premiums increased to $29.5 million, or 5.2%, as compared to $28.0 million for the three month periods ended September 30, 2018 and 2017,
respectively
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ATLANTA, Georgia, November 13, 2018 - Atlantic American Corporation (Nasdaq- AAME) today reported net income for the three month period ended September
30, 2018 of $0.9 million, or $0.04 per share, as compared to $0.7 million, or $0.03 per share, for the comparable period of 2017. For the nine month period ended September 30, 2018, the company reported a net loss of $0.9 million, or $0.06 per
share, as compared to net income of $2.0 million, or $0.08 per share, for the comparable period of 2017. The increase in net income during the third quarter of 2018 was primarily due to $1.1 million of net unrealized gains in equity securities
during the third quarter of 2018 compared to nil for the third quarter of 2017. The net loss for the nine month period ended September 30, 2018 was primarily due to an increase in operating losses as a result of higher levels of morbidity
experienced in the Medicare supplement line of business during the first half of 2018.
Total revenues for the three month period ended September 30, 2018 were $46.4 million as compared to $44.8 million for the three month period ended
September 30, 2017. The above mentioned unrealized gains in equity securities and an increase in insurance premiums were the most significant contributors to the increase in total revenues. Insurance premiums during the three month period ended
September 30, 2018 increased $0.5 million or 1.1% from the comparable 2017 period and was primarily the result of an increase in Medicare supplement premiums in the Company’s life and health operations somewhat offset by a decrease in property
and casualty premiums. For the nine month period ended September 30, 2018, revenues were $136.4 million, increasing 3.1% from the comparable 2017 period revenues of $132.3 million, primarily as a result of an increase in Medicare supplement
premium revenues. Insurance premiums during the nine month period ended September 30, 2018 of $127.6 million increased 3.7% from the comparable 2017 period amount of $123.0 million.
Commenting on the third quarter, Hilton H. Howell, Jr., chairman, president and chief executive officer, stated, “Our senior leadership team at Bankers
Fidelity continues to drive efforts focused on improving profitability, enhancing the product portfolio, and delivering superior customer service to our policyholders and agents. Although the year to date Medicare supplement results did not meet
expectations, we are encouraged by the continued growth in the life and health operation and are confident strategic rate adjustments implemented throughout the year will result in improved margins. Even though our property and casualty premiums
declined slightly, American Southern continues to deliver profitable operating results through prudent underwriting of their programs. While anticipating a good close to the current year, we feel well positioned for a successful 2019.”
Atlantic American is an insurance holding company involved through its subsidiary companies in specialty markets of the life, health,
and property and casualty insurance industries. Its principal insurance subsidiaries are American Southern Insurance Company, American Safety Insurance Company, Bankers Fidelity Life Insurance Company and Bankers Fidelity Assurance Company.
Note regarding Private Securities Litigation Reform Act: Except for historical information contained herein, this press release
contains forward-looking statements that involve a number of risks and uncertainties. Actual results could differ materially from those indicated by such forward-looking statements due to a number of factors and risks detailed from time to time
in statements and reports that Atlantic American Corporation files with the Securities and Exchange Commission.
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For further information contact:
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J. Ross Franklin
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Hilton H. Howell, Jr.
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Chief Financial Officer
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Chairman, President & CEO
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Atlantic American Corporation
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Atlantic American Corporation
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404-266-5580
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404-266-5505
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Atlantic American Corporation
Financial Data
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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(Unaudited; In thousands, except per share data)
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2018
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2017
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2018
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2017
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Insurance premiums
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Life and health
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Gross earned premiums
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$
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45,568
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$
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36,671
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$
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133,158
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$
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102,502
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||||||||
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Ceded premiums
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(16,061
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)
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(8,623
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)
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(44,853
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)
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(19,774
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)
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||||||||
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Net earned premiums
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29,507
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28,048
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88,305
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82,728
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Property and casualty
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||||||||||||||||
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Gross earned premiums
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14,288
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15,284
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42,968
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43,860
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||||||||||||
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Ceded premiums
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(1,238
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)
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(1,238
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)
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(3,669
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)
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(3,592
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)
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||||||||
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Net earned premiums
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13,050
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14,046
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39,299
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40,268
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||||||||||||
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Net investment income
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2,215
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2,136
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7,111
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6,380
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||||||||||||
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Realized investment gains, net
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484
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539
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797
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2,818
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Unrealized gains on equity securities, net
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1,083
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-
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753
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-
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||||||||||||
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Other income
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31
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29
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88
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95
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Total revenue
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46,370
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44,798
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136,353
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132,289
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Insurance benefits and losses incurred
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Life and health
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22,415
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20,754
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69,934
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61,567
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Property and casualty
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10,672
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9,663
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28,544
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25,879
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Commissions and underwriting expenses
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8,722
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10,176
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28,456
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31,800
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||||||||||||
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Interest expense
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529
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440
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1,497
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1,273
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Other expense
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2,960
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3,134
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9,168
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9,301
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Total benefits and expenses
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45,298
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44,167
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137,599
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129,820
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Income (loss) before income taxes
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1,072
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631
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(1,246
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)
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2,469
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Income tax expense (benefit)
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138
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(116
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)
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(341
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)
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483
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Net income (loss)
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$
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934
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$
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747
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$
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(905
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)
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$
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1,986
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Earnings (loss) per common share (basic and diluted)
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$
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0.04
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$
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0.03
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$
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(0.06
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)
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$
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0.08
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Reconciliation of Non-GAAP Financial Measure
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Net income (loss)
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$
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934
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$
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747
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$
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(905
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)
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$
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1,986
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|||||||
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Income tax expense (benefit)
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138
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(116
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)
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(341
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)
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483
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||||||||||
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Realized investment gains, net
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(484
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)
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(539
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)
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(797
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)
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(2,818
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)
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Unrealized gains on equity securities, net
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(1,083
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)
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-
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(753
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)
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-
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Operating gain (loss)
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$
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(495
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)
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$
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92
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$
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(2,796
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)
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$
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(349
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)
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|||||
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Selected Balance Sheet Data
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September 30,
2018 |
December 31,
2017 |
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Total cash and investments
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$
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255,058
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$
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272,058
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Insurance subsidiaries
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234,696
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244,754
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Parent and other
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20,362
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27,304
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Total assets
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339,549
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343,239
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Insurance reserves and policyholder funds
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187,813
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173,583
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Debt
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33,738
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33,738
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||||||
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Total shareholders' equity
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102,118
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112,983
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Book value per common share
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4.78
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5.26
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Statutory capital and surplus
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||||||||
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Life and health
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30,845
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34,135
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Property and casualty
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43,922
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43,348
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